For decades, the corridors of power in global economics were dominated by men. Trade deals were negotiated, budgets crafted, and economic policies implemented, all largely shaped by a singular perspective.

But a seismic shift is underway. Women are increasingly ascending to positions of political leadership, and their impact on the global economy is becoming undeniable.

Policy Architects for the Future

Consider the case of New Zealand Prime Minister Jacinda Ardern. Taking office in 2017, Ardern prioritised issues like well-being budgeting, which focuses on social outcomes alongside traditional economic indicators.

This approach has seen New Zealand achieve impressive results, including low unemployment and a strong social safety net. Similarly, Finland’s Prime Minister Sanna Marin has championed policies that support working families, like free universal childcare.

These policies empower women to participate more fully in the workforce, boosting economic growth and productivity.

Negotiating a New World Order

Women are also reshaping the landscape of international trade and diplomacy. Ngozi Okonjo-Iweala, the first woman and first African Director-General of the World Trade Organisation (WTO), is driving critical reforms to make global trade more equitable and inclusive for developing countries.

Her focus on issues like intellectual property rights and vaccine access reflects a nuanced understanding of the interconnectedness of global economic well-being.

Champions of Growth and Innovation

Beyond traditional policy areas, women leaders are proving to be champions of innovation and technological advancement. Ursula von der Leyen, President of the European Commission, has made digital transformation a cornerstone of her agenda.

She established a dedicated Directorate-General for Defense Industry and Space, recognizing the crucial role these sectors play in the future of the global economy.

In Rwanda, Minister of ICT and Innovation Paula Ingabire has spearheaded initiatives to position the country as a tech hub in Africa. Rwanda boasts a vibrant startup ecosystem and is a leader in digital financial inclusion.

Beyond the Numbers: Correlation and Causation

The correlation between women in political power and positive economic outcomes is increasingly evident. A 2019 study by the World Bank found that countries with higher percentages of women in parliament experience greater economic growth and reduced income inequality.

Research by the International Monetary Fund (IMF) suggests that companies with more women in leadership positions tend to be more profitable.

While correlation doesn’t necessarily imply causation, these trends suggest that women leaders may bring a different, perhaps more collaborative and inclusive, approach to economic decision-making, leading to more sustainable and equitable outcomes.

Challenges and the Road Ahead

Despite these strides, significant barriers remain. Women are still vastly underrepresented in the highest echelons of political power. Cultural biases, lack of access to political networks, and persistent gender stereotypes all contribute to the challenge.

However, the rising tide of women demanding change is undeniable. Organisations like the Inter-Parliamentary Union (IPU) are actively promoting gender parity in parliaments worldwide.

A More Equitable Future

The rise of women in political leadership presents a unique opportunity to reshape the global economy.

Their focus on social well-being, inclusive growth, and technological innovation can pave the way for a more just and sustainable future for all.

As the number of women leaders continues to grow, we can expect even greater strides in tackling global economic challenges and forging a more prosperous future for generations to come.